Does FunderPro's Maximum Total Loss include unrealized losses from open positions?

Yes, FunderPro's 6% Maximum Total Loss includes both realized losses from closed trades and unrealized losses from open positions. If your account equity drops 6% below the initial balance due to open trades in the red, your account will be terminated immediately. Always monitor your floating P&L carefully.

What happens if I breach the Maximum Total Loss?

Breaching FunderPro's 6% Maximum Total Loss results in immediate account termination with no warnings or grace period. Your challenge or funded account will be closed permanently and you cannot recover it. You would need to purchase a new challenge to start over from the beginning.

Does the Maximum Total Loss reset when I pass from Challenge Phase 1 to Phase 2?

Yes, when you successfully complete Phase 1 of FunderPro's challenge and advance to Phase 2, you receive a fresh account with a new 6% Maximum Total Loss limit based on the new starting balance. The same reset occurs when you pass Phase 2 and receive your funded account.

Is Maximum Total Loss calculated from account balance or equity?

FunderPro calculates Maximum Total Loss from your account equity, not just closed balance. This means unrealized losses from open positions count toward the 6% limit in real-time. If your equity drops 6% below the initial starting balance at any point, even with open trades, your account will be breached and terminated.

Updated 2026-03-08

FunderPro Maximum Total Loss Rule Explained

FunderPro

Quick Answer

FunderPro's Maximum Total Loss rule allows a maximum 6% drawdown from the initial account balance.

This rule is calculated as a fixed 6% of your starting balance, meaning on a $100,000 account you cannot lose more than $6,000 total. The drawdown includes both realized and unrealized losses. Breaching this limit results in immediate account termination during both Challenge and Funded phases.

Key Rule Details

Limit

Dollar Value ($100,000)

$6,000

Basis

initial account balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Total Loss: $6,000

Account Size	$100,000
Maximum Total Loss Limit	$6,000
Scenario: Closed P&L	$-1,680
Scenario: Floating P&L	$-3,120
Total Exposure	$-4,800
Remaining Buffer	$1,200

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Traders often focus only on closed trades while ignoring open positions showing red. If your account is at $95,000 on a $100,000 account and you have an open trade down $1,500, you're already at the $6,000 maximum total loss limit. The account will be terminated even if you haven't closed the losing position.

Confusing Daily and Total Limits

Many traders think the 6% total loss resets daily like the 3% daily loss rule. On a $50,000 account, once you've lost $3,000 total, you only have $3,000 left for the entire duration of the challenge or funded phase. The total loss limit never resets until you pass to the next phase or get a new account.

Weekend Gap Risk Miscalculation

Traders hold positions over weekends without accounting for potential gaps that could breach the 6% limit instantly. On a $25,000 account with $1,000 already lost, holding a risky position worth $1,000 over the weekend could gap down $500+ on Monday open, pushing total losses beyond the $1,500 maximum and terminating the account.

Correlation Risk Accumulation

Opening multiple positions in correlated markets without realizing combined exposure. Trading EUR/USD, GBP/USD, and AUD/USD simultaneously during volatile news can move all positions against you at once, quickly accumulating losses that breach the 6% total limit faster than anticipated on any account size.

Protection Strategies

Set Personal 4% Maximum Buffer

Create your own maximum loss limit at 4% instead of the full 6% allowed by FunderPro. On a $100,000 account, stop trading when you've lost $4,000, giving yourself a $2,000 safety buffer. This protects against unexpected market moves, slippage, or calculation errors that could push you over the firm's limit.

Use 1% Risk Per Trade Maximum

Never risk more than 1% of your initial balance per trade to ensure you need at least 6 losing trades to approach the limit. On a $50,000 account, this means maximum $500 risk per trade. This position sizing ensures you have multiple opportunities to recover and prevents any single trade from causing significant damage to your total allowable loss.

Set Balance Alerts at 3% Down

Configure trading platform alerts when your account balance drops 3% below starting balance, giving you early warning at the halfway point. On a $25,000 account, set the alert at $24,250. This allows time to reassess your strategy, reduce position sizes, or take a break before approaching the dangerous 6% maximum total loss threshold.

Avoid High Impact News Trading

Despite FunderPro allowing news trading, avoid holding positions during major economic releases like NFP, FOMC, or GDP announcements. These events can cause rapid 100+ pip moves that could breach your 6% limit within minutes. Close positions 30 minutes before high-impact news and wait for volatility to settle before re-entering trades.

Related Rules

Maximum Daily Loss

→

Profit Target (Phase 1)

10%

→

Profit Target (Phase 2)

FunderPro Comparisons

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FunderPro's official website before purchasing a challenge. Updated 2026-03-08.